Established under the Nigeria Export Processing Zones Authority (NEPZA) framework and commissioned in 2001, the Calabar Free Trade Zone (CFTZ) was conceived as a cornerstone of Nigeria’s export-led industrialisation strategy.
Behind CFTZ’s gates, factories operate; warehouses stand ready for commerce, and investors continue to test the possibilities of doing business in one of Nigeria’s pioneer free trade zones.
The CFTZ has a vision to attract foreign direct investment, boost non-oil exports, create jobs, and stimulate manufacturing and position Cross River as a strategic industrial hub serving West and Central Africa.
While it has attracted significant investments and created employment opportunities for over two decades, the zone continues to grapple with challenges that have long hindered industrialisation in Nigeria.
These challenges range from infrastructure deficits and security concerns to environmental issues, logistics constraints and policy uncertainties.
The future of the zone came into sharp focus during a recent visit by the Managing Director of NEPZA, Dr Olufemi Ogunyemi, who held separate engagements with investors, security agencies, traditional institutions and government officials in Cross River.
Throughout the engagements, one message resonated strongly: the Calabar Free Trade Zone remains strategically important to Nigeria’s economy, but urgent interventions are required to unlock its full potential.
“When I was appointed by the president three years ago, the first zone I visited was the Calabar Free Trade Zone.
“You occupy a very important role in our country.
“It is our mandate to regulate and monitor compliance, but it is equally our responsibility to support investors and ensure their success,” he said.
His remarks reflected NEPZA’s effort to balance its dual role as regulator and facilitator of investment.
The choice of Calabar as Nigeria’s first export processing zone was not accidental as the city offers access to maritime routes through the Calabar Port, proximity to markets within the Gulf of Guinea and strategic positioning for regional trade.
Policymakers envisioned the zone as a platform for attracting foreign investment and diversifying the economy beyond oil.
Over the years, the zone has recorded notable achievements. By 2020, it had licensed dozens of enterprises across sectors ranging from manufacturing and agro-processing to oil and gas services.
Thousands of direct jobs were created, while investment commitments reportedly reached billions of dollars.
These achievements have reinforced the belief among policymakers that the zone remains one of Nigeria’s most valuable industrial assets.
However, stakeholders argue that the zone has not yet achieved the transformational impact originally envisioned by its architects.
One recurring issue during Ogunyemi’s visit was security– investors raised concerns over theft, vandalism and illegal access into industrial facilities.
Some security agencies acknowledged these existing challenges attributing it to a shortage in security personnel within the zone. They however added that reduction to funding and operational constraints led to the shortage in personnel.
Stakeholders said the manpower shortage highlighted the broader challenge of protecting critical national assets and maintaining investor confidence.
Ogunyemi assured investors that NEPZA would continue working with security agencies and the Cross River State Government to strengthen security architecture within the zone.
Beyond security, infrastructure remained one of the biggest obstacles confronting businesses in the zone.
Stakeholders cited poor road conditions, inadequate lighting, ageing public facilities and insufficient surveillance infrastructure as issues affecting operations.
The Area Controller of the Nigeria Customs Service at the zone, Mr Uwumarogie Obanor, called for the deployment of Closed-Circuit Television (CCTV) systems and improved facilities to enhance monitoring and trade facilitation.
He also appealed for the rehabilitation of customs facilities within the zone, noting that “some offices have deteriorated due to age and weather conditions.”
Similarly, investors advocated greater investment in street lighting and road infrastructure, arguing that improved public utilities would boost productivity and security.
The National Drug Law Enforcement Agency (NDLEA) also requested office accommodation at Tinapa to improve operational effectiveness.
For industry observers, these concerns underscore the need for sustained investment in infrastructure if the zone is to remain competitive among emerging industrial and logistics hubs across Africa.
Investors raised complaints about emissions from Bao Yao Industry, alleging that its operations were affecting neighbouring businesses and creating environmental risks.
The Managing Director of the CFTZ, Hajiya Binta Saeed, provided further insights.
“The management of the zone has repeatedly engaged the company on the need to install pollution-control equipment,’’ she said.
Representatives of Customs, Immigration, NSCDC, NDLEA and zone management all emphasised the importance of inter-agency cooperation in addressing operational bottlenecks.
Discussions also extended to Tinapa Business and Leisure Resort, the once-celebrated commercial and tourism project located adjacent to the free trade zone.
Though Tinapa has struggled to achieve its original vision, stakeholders believe its revitalisation could complement industrial activities within the zone and contribute significantly to economic growth in Cross River.
Ogunyemi disclosed that discussions were ongoing with relevant stakeholders on the future of the facility and expressed optimism about efforts to restore economic activity there.
Many analysts argue that integrating Tinapa’s commercial potential with the industrial activities of the free trade zone could create a more vibrant economic ecosystem.
Beyond investors and government agencies, the managing director of NEPZA also engaged traditional institutions during his visit.
At the palace of the Obong of Calabar, Obong of Calabar, Edidem Ekpo Otu V, discussions centred on strengthening collaboration between NEPZA, host communities and traditional authorities.
The traditional ruler emphasised the need for the free trade zone to deliver tangible benefits to local communities through employment, infrastructure development and economic opportunities.
“The CFTZ should serve as a major driver of industrialisation and economic prosperity for Cross River and the country at large,” he said.
Observers say community support remains essential to the long-term sustainability of industrial and commercial activities within the zone.
As Nigeria seeks to expand non-oil exports and deepen economic diversification, many analysts believe the fortunes of the CFTZ will serve as an important measure of the country’s broader industrialisation efforts.
The zone possesses several enduring advantages– an established regulatory framework, proximity to maritime infrastructure, access to regional markets and a long-standing investment brand.
Yet, stakeholders argue that these strengths must be matched by deliberate investments in infrastructure, security, environmental management and policy consistency.
The CFTZ stands as a clear testament to Nigeria’s industrial potential, but its ongoing success relies heavily on steady investment, robust leadership, and unified stakeholder cooperation.
Currently, investors are upbeat that renewed attention to the zone could mark the beginning of a new chapter in its development journey.
